First up for today is a simple retracement play on Cable. The pair is headed for the 1.4200 psychological area after dropping to 1.4000 yesterday. The 50% Fib on the 1-hour chart could pose a challenge for the bulls, especially since it lines up with a falling trend line resistance that’s been holding since the start of the month. The bears could short at the resistance area and place stops above the trend line. Of course, you could also wait for an upside break if you’re one of them pound bulls.
Can’t get enough of the pound? Here’s another one for ya! GBP/JPY is lollygagging at the 155.00 major psychological level, which has also served as a support back in mid-February. Right now the bulls have stochastic on their side with its oversold signal. A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you leave enough room for volatility, aight? Yen crosses tend to be more volatile than the majors!
Somebody holler at Happy Pip because this setup is too good to miss! USD/CAD looks like it has bounced from the 1.3159 area, which is right smack at a falling trend line and 100 SMA resistance on the 4-hour time frame. What’s more, stochastic has also just left the overbought territory. You could short at current levels and place your stops above the trend line if you think that the dollar has more room to fall, but you could always wait for price to break above the resistance lines if you believe that the Greenback will soon gain momentum against the Loonie.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.